Ontario, Canada - (Cheap Web Hosting Directory) - November 22, 2006 - Web hosting and Internet services company, Hostopia.com Inc., has reported a successful second quarter, releasing its financial results as of September 30, 2006.

Colin Campbell, Chief Executive Officer commented, ''We had a very successful second quarter and are very excited about our continued progress on a number of fronts. During the quarter we entered into agreements with a number of new customers. We also made great progress developing search engine optimization, enhanced site creation software, and collaborative e-mail services. In addition, we recently launched Website Experts our website design service. We are also thrilled that on November 10, subsequent to the end of the quarter, Hostopia became a public company. The net proceeds from our IPO will allow us to invest in technology and geographic expansion to further accelerate the growth of our web hosting and application services.''

Business Highlights include: - Quarterly revenue increases 29% year over year (96.7% monthly recurring revenue) - 26th quarter of consecutive revenue growth - End-user growth of 32% quarterly year over year to over 237,000 - Signed 16 new customer contracts including Aliant, McLeod and Talk Talk - Subsequent to quarter end signed a new customer contract in the U.K. with BT (British Telecommunications PLC) - Completed CDN$25,200,000 initial public offering, on November 10, 2006

Mr. Campbell continued, ''Business is showing significant momentum and we are excited by our recent customer wins. In particular, our recent win with BT represents a significant opportunity to establish ourselves in the U.K. market. During the second quarter we began investing in our technology infrastructure and services in order to be in a position to rapidly deploy our services to these new customers.''

Revenues increased 29% or $1.3 million to $5.6 million in the three months ended September 30, 2006 compared to the same period last year. This growth in revenues was due to a 32% or 57,900 increase in the number of end-users hosted and serviced since September 30, 2005. At September 30, 2006, the company had approximately 237,000 end-users utilizing its services. Growth in end-users has come from both existing customers that added new end-users, as well as the acquisition of new customers and their end-users. Basic and diluted net income per common share for the second quarter was $0.10 and $0.07 respectively, compared to $0.13 and $0.08 for the same period last year. For the six months ended September 30, 2006, basic and diluted net income per common share was $0.21 and $0.15 respectively, compared to $0.21 and $0.14 for the six months ended September 30, 2005. Earnings were slightly lower year over year as a result of the investment required to prepare the business for our new customer additions and higher research and development expenses related to the development of new web services and enhanced software and service offerings.

Colin Campbell, Chief Executive Officer and Michael Mugan, Chief Financial Officer, discussed financial results and performance for the three months ended September 30, 2006. A replay of the conference call is available. To access the replay, call 416-640-1917 or 1-877-289-8525, followed by passcode 21209768 followed by the number sign.

Hostopia develops, manages, and distributes Internet applications used by small and medium sized businesses, including web site hosting, managed email, ecommerce, and other online business applications. Hostopia sells its services on a wholesale basis to communications services providers such as telecommunications and cable companies, Internet service providers, domain registrars, and web hosting companies who, in turn, resell Hostopia's services under their own brand to small-medium sized business customers.

For more information about Hostopia, please visit: www.hostopia.com.